Finding Text
2022 ? 002 ? Title IV Credit Balances Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster CFDA Number: 84.007. 84.033, 84.038, 84.063, 84.268 Award Period: 7/1/21-6/30/22 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: If FSA disbursements to a student?s account at the school create a Title IV credit balance, the school must pay the credit balance directly to the student or parent as soon as possible but no later than 14 days after: - the first day of class of a payment period if the credit balance occurred on or before that day, or - the balance occurred if that was after the first day of class. Condition: In our sample of 40 students tested, one student had a Title IV credit balance that was not paid directly to the student within the required timeframe. Questioned Costs: None Context: One student out of a sample of 40 students had a Title IV credit balance that was paid outside of the required timeframe. Cause: Student received a late payment of federal aid, which was not properly communicated between the College?s departments. This breakdown in communication was not discovered until after the required time period had already passed. Effect: The College is not in compliance with the federal regulations. Repeat Finding: No. Auditors? Recommendation: The College should review its policies and procedures on communication of students who receive late disbursements of federal aid. Views of Responsible Officials: See attached corrective action plan.